During a period of rapid growth in output,
A) employment generally increases and unemployment decreases.
B) employment generally decreases and unemployment increases.
C) both employment and unemployment generally increase.
D) both employment and unemployment generally decrease.

Question

Quizplus · Accepted Answer

During a period of rapid growth in output, there is usually an increase in demand for labor, which leads to an increase in employment and a decrease in unemployment. As firms produce more goods and services, they need to hire more workers to keep up with the demand, thus creating more job opportunities.

During a Period of Rapid Growth in Output